Datadog, the cloud monitoring and analytics firm, raised its full-year forecast on Thursday after beating first-quarter expectations. Shares jumped nearly 29% in premarket trading.
The New York City-based company attributed the surge to strong demand for its cloud security products, driven by the rise of generative AI and cloud migration.
First-quarter revenue was $1.01 billion, up 32% year-over-year and well above the $961.3 million estimate. Adjusted profit was $0.60 per share, beating the $0.51 consensus.
CEO Olivier Pomel said the company is helping customers deploy cloud-based, AI-enabled solutions. The company now sees full-year 2026 revenue between $4.30 billion and $4.34 billion, up from its prior range of $4.06 billion to $4.10 billion.
Adjusted profit for the year is seen at $2.36 to $2.44 per share, compared to the earlier forecast of $2.08 to $2.16. Q2 guidance also topped estimates.